Latest update May 27th, 2024 12:59 AM
Aug 22, 2015 Letters
DEAR EDITOR,
In keeping with its pre-elections promise to go after all illegally obtained assets of the state, the government has established an asset recovery unit, to recover all state property which was allegedly subject to abuse by the previous administration. But even as the populace anxiously awaits word that the unit is fulfilling its mandate; it might be worthwhile to examine the implications inherent in such a painstaking process.
Simply put, the process through which any government can actuate the recovery of stolen assets is by investigation. The term investigation (noun) is a formal enquiry or systematic study of something, someone or an entity. This can include examination, exploration, consideration, appraisal, perusal, scrutiny, search, inspection, audit, survey, probe, interview, interrogation and intelligence gathering for forensic purposes.
FORENSICS
Forensic science is the scientific method of gathering and examining information about the past which is then used in a court of law. Therefore, a forensic audit like any other forensic activity must be conducted in accordance with international best practices.
INTELLIGENCE
Intelligence is the product resulting from the collection, evaluation and integration of all available information. Intelligence operations are the wide-ranging activities conducted by intelligence organizations or operatives; for the purpose of providing timely information on a target and strive to identify the target’s ability, and project probable courses of action. It is sometimes necessary to also gather intelligence on the family, friends and associates of persons under investigation; this process is known as an association analysis and is governed by scientific principles. An association analysis is achieved through surveillance among others means.
SURVEILLANCE
Surveillance is defined as:
“Any covert observation of persons, vessels, aircraft, vehicles, cargo, premises or objects for the purpose of gathering information, intelligence and/or evidence, as part of the investigative process.”
WHY CONDUCT SURVEILLANCE?
* To confirm or refute information
* To safeguard an informant or verify their information
* To identify subjects associates
* To document overseas travel patterns and activities
* To establish detailed patterns of activity of subjects
* To establish the modus operandi and whereabouts of subjects
* To contain escape routes of subjects etc.
Since physical assets or property owned by an individual is easier to trace, we will devote our attention hereafter, on a few of the methods used to conduct money laundering investigations.
An investigator will be much likelier to succeed if he or she has an understanding of ancient and traditional economic systems. Two cases quickly come to mind:
Anywhere one finds people of African descent, one will also find the practice known as “throwing box” and while the government of Barbados has imposed foreign exchange restrictions, people have found innovative ways to repatriate money. Thus, different cultures have different financial systems which were developed over centuries. While some are simple and straightforward, others are very sophisticated and complex. These traditional financial systems very often provide the basis and cover of modern day money laundering activities.
WIRE TRANSFER SYSTEM
Next, you should know something about the wire transfer system. Money could be moved around using a number of different wire transfer methods, a process that is much more complex than you think. Many such transactions use the (SWIFT) modality = Society for Worldwide Interbank Financial Telecommunication. SWIFT provides a network that enables financial institutions worldwide to send and receive information about financial transactions in a secure, standardized and reliable environment. But due to complications inherent in this process, it often takes in excess of 18 months and beyond to trace (one) financial transaction.
CAMBIOS
To circumvent the paper trail process, some persons setup or use a cambio system to purchase foreign currency then transfer this money physically through a complex network of intermediaries. Gold and diamonds are also transferred in this manner.
THE INVESTIGATION
All investigations start with a plan which determines their terms of reference, etc. a money laundering investigation is no different; the first thing that is done is the establishment of a business profile, this allows the investigator to closely study the pattern of money moving through an account. The business profile allows for the detection of illegal payments or attempts to hide assets from the point of payment (i.e. from the accounts and records of the entity suspected of making the payments). It identifies prospective witnesses and targets, as well as relevant documents and transactions.
Given the inordinate sums involved, I would hazard a guess that the APNU-AFC government would need in excess of seven years to complete the current asset recovery process, and when all is said and done, I do not expect them to recover anything more than about forty percent, which is still a lot in these circumstances.
Clairmont Featherstone
JAGDEO’S HALF TRUTH!!!!
May 27, 2024
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